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Compare credit cards with price protection

Price protection is a feature of some credit cards designed to protect you when the purchase price of an item drops. Compare credit cards that offer this feature today to find a card for you. Consider the purpose of your credit card before you decide.

Alex Ritchie

Personal Finance Editor

Content updated

19 Apr, 2024

Product data updated

19 Apr, 2024

If you’re in the market for a credit card, you may be familiar with some of the more well-known features like interest-free days and bonus reward points. You may not know about a lesser-known perk called price protection.

Credit cards that offer a price protection guarantee to protect the cardholder from overpaying or getting ripped off. For example – you purchase a product in-store and pay $1,000 for it. A few days later, you notice another store selling the same item for a lower price than you originally paid. If you’ve got a credit card with price protection guarantee, you would theoretically be able to claim the difference between what you paid and the lower price.

Before you start backtracking through your credit card statement, here’s what you need to know about credit cards with price protection guarantee.

What is price protection on a credit card?

Price protection, also known as purchase protection, is a handy type of insurance that can help to prevent cardholders from being ripped off on items bought with their credit cards.

If, for example, you purchased a new appliance for $500, but then saw it was being sold at other retailers for $350, price protection allows cardholders to contact their card issuer and claim the price difference. Not all credit cards come with this feature, so factor this into your comparison when choosing a new credit card.

What credit cards have price protection?

Not every credit card comes with price protection insurance. This type of feature may typically be reserved for more premium credit cards as well as rewards credit cards. However, some basic low-rate credit cards may still offer this feature. This is why credit card comparison can be invaluable in your card search, as it can help you to narrow down your options and filter out any cards that don’t offer this perk.

It’s important to keep in mind that each credit card issuer will have different eligibility criteria around its price protection insurance, so it’s important to stay on top of any rules before trying to make a claim. Cards that offer price protection also typically come with higher annual fees and ongoing costs.

How do credit cards with price protection guarantee work?

Generally speaking, a credit card price guarantee is a bonus feature offered by credit card companies to give cardholders peace of mind. Depending on the type of card you choose, the price protection guarantee may be included as part of the card’s features, or it may be available at an extra charge.

The conditions and amount you can claim vary depending on the card, but as a general rule of thumb, a price protection guarantee is usually valid for up to three months for products that have been bought using the card in Australia. Regardless of how often you use your credit card, knowing how to use a credit card with a price protection guarantee can save you from getting ripped off or overpaying.

What to look for in credit cards with price protection guarantee

The terms and conditions of credit cards offering a price protection guarantee vary greatly between cards, so it’s important to do your research and compare your options.

When you’re comparing price protection guarantee, look out for what items are covered as there are usually limits on what you can and can’t claim. For example, a camera or smartphone may be covered, but a car or motorbike may not. Generally speaking, perishable and consumable items aren’t eligible. If you’re a frequent flyer and use your card overseas, check that the price protection guarantee covers international purchases.

In addition to offering a price protection guarantee, some credit cards also offer insurance cover against theft, accidental damage or loss for a period of time. Policies and conditions vary between cards, so check the credit card product disclosure statement, so you know where you stand.

There may also be limits to the amount you can claim – some cards have a dollar limit per claim while other may have an annual threshold.

The claims process is different for each card, so find out what happens if you do need to make a claim. There are things to look for, such as whether you need to claim in a specific timeframe, what supporting documentation you need to claim and how long it takes for the claim to be processed.

Price protection guarantees are a feature of credit cards. While it can be a beneficial feature, there are other factors to consider when comparing credit cards. It always pays to look at the bigger picture and factor in card fees, interest rates, rewards programs and other incentives like interest-free days.

Alex Ritchie

Personal Finance Editor

Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.